Kyle Grieve breaks down Michael Mauboussin’s key insights on combating noise, valuing intangible-rich businesses, using the rule of 40, leveraging checklists and algorithms, understanding base rates, and more.

IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:03:00 - How to use the BIN acronym to help you deal with forecasting error
00:14:32 - Four myths in investing (many of which I’ve fallen for)
00:26:15 - Why you must take GAAP numbers on a case-by-case basis due to handicaps of the standard
00:25:07 - How the rise in passive investing is making active investing more challenging
00:33:19 - Why GAAP losers outperform GAAP winners
00:37:14 - Why you should understand the differences between pricing and valuing a business
00:48:39 - Why using assorted multiples will help identify true undervaluations
00:45:50 - How to utilize the rule of 40 in your investing regardless of whether you invest in tech or not
00:49:16 - What to know about the base rates of a public business’s survival
00:58:00 - Why most investments will fail and how to deal with the ones that succeed

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES
<ul>
 <li>Join the exclusive <a href="https://www.theinvestorspodcast.com/mastermind-2/">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠TIP Mastermind Community⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a> to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.</li>
 <li>Read The Consilient Observer <a href="https://www.morganstanley.com/im/en-us/individual-investor/insights/series/consilient-observer.html">here.</a>
</li>
 <li>Learn about the BIN framework <a href="https://www.morganstanley.com/im/publication/insights/articles/article_bintheredonethat_us.pdf?1725900021312">here.</a>
</li>
 <li>Dive into the four myths <a href="https://www.morganstanley.com/im/publication/insights/articles/article_mythbustingpopulardelusions_en.pdf?1725900075736">here.</a>
</li>
 <li>Explore valuation multiples more <a href="https://www.morganstanley.com/im/publication/insights/articles/article_valuationmultiples.pdf?1725900177401">here</a>
</li>
 <li>Understand total shareholder returns more <a href="https://www.morganstanley.com/im/publication/insights/articles/article_totalshareholderreturns.pdf?1725900217802">here.</a>
</li>
 <li>Improve your views on business survival <a href="https://www.morganstanley.com/im/publication/insights/articles/article_birthdeathandwealthcreation.pdf?1725900454745">here</a>.
</li>
 <li>Follow Kyle on <a href="https://twitter.com/IrrationalMrkts">Twitter</a> and <a href="https://www.linkedin.com/in/kylegrievetip/">LinkedIn.</a>
</li>
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